PROPERTY:

Kingswell Dr, Woodbridge, VA 22193

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $230,000. The borrower is putting up about $60K of their own cash plus fronting the construction costs. The property only needs about $10K in work to spruce up.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $200,000 1st Mortgage
Value of Subject Property: $315,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 591


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area of Prince William County Virginia. The borrower will be contributing about $60K+ into this deal plus fronting construction money.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.